Chapter 13: Leadership Ethics

Overview Leadership Ethics Perspective Practical Ethical Theory Ethical Theories Principles of Ethical Leadership Diverse Ethical Perspectives How Does the Leadership Ethical Perspective Work? Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Leadership Ethics Description Definition & Theory Ethics Is a derivative of the Greek word ethos, meaning customs, conduct, or character Is concerned with the kinds of values and morals an individual or society ascribes as desirable or appropriate Focuses on the virtuousness of individuals and their motives Development of ethocal theory goes back to Plato and Aristotle. Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Practical Ethical Theory Kohlberg’s Stages of Moral Development Level 1. Pre-conventional morality Stage 1 – Obedience and Punishment: Rules are fixed and handed down by authority Stage 2 – Individualism and Exchange: An action is right if it serves the individual Level 2. Conventional Morality Stage 3 – Interpersonal Accord and Conformity: Conforming to the expectations of others Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Kohlberg’s Stages of Moral Development Stage 4 – Maintaining the Social Order: Moral decisions show concern for society as a whole Level 3. Post-conventional Morality Stage 5 – Social Contract and Individual Rights: Moral decisions based on what a good society should be like Stage 6 – Universal Principles: Moral decisions based on internalized universal principles of justice that apply to everyone Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

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Leadership Ethics Description Definition & Theory Ethical Theory Provides a system of rules or principles as a guide in making decisions about what is right/wrong and good/bad in a specific situation Provides a basis for understanding what it means to be a morally decent human being Development of ethocal theory goes back to Plato and Aristotle. Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Ethical Theories Two Broad Domains: Theories about leaders’ conduct and about leaders’ character table number incorrect Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

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Teleological Theories: focus on consequences of actions, results Ethical Theories Teleological Theories: focus on consequences of actions, results CONDUCT Ethical egoism (create greatest good for the leader) Closely related to transactional leadership theories Example: leader takes a political stand on an issue for no other reason than to get re-elected Utilitarianism (create greatest good for greatest number) Example: leader distributes scarce resources so as to maximize benefit to everyone, while hurting the fewest; preventive health care vs. catastrophic illnesses Altruism (show concern for best interests of others) Authentic transformational leadership is based on altruistic principles Example: the work of Mother Teresa, who gave her entire life to help the poor Teleological – consequenses of

Ethical Theories CONDUCT Deontological Theories duty driven, for example, relates not only to consequences but also to whether action itself is good Focus on the actions of the leader and his/her moral obligation and responsibilities to do the right thing Example: telling the truth, keeping promises, being fair Teleological – consequenses of Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Ethical Theories Virtue-based Theories: about leader’s character Focus on who people are as people Rather than tell people what to do, tell people what to be Help people become more virtuous through training and development Virtues are present within person’s disposition; practice makes good values habitual Examples: courage, honesty, fairness, justice, integrity, humility Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Centrality of Ethics to Leadership Influence dimension of leadership requires the leader to have an impact on the lives of followers Power and control differences create enormous ethical responsibility for leaders Respect for persons – sensitive to followers’ own interests and needs Leaders help to establish and reinforce organizational values – an ethical climate Ethics plays a central role in the leadership process. Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Diverse Perspectives of Leadership Heifetz’s Perspective Emphasizes how leaders help followers to confront conflicting values & to effect change from conflict Ethical perspective that speaks directly to Values of workers Values of organizations and the communities in which they work Several prominent scholars – Heifetz, Burns and Greenleaf – they’ve made unique contributions to our understanding of ethical leadership – The theme that is common to all 3 – is an ethic of caring - which pays attention to followers needs and the importance of leader-follower relationships. Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Diverse Perspectives of Leadership Heifetz’s Perspective Leaders use authority to mobilize followers to Get people focused on issues Act as a reality test regarding information Manage and frame issues Orchestrate conflicting perspectives Facilitate the decision-making process Several prominent scholars – Heifetz, Burns and Greenleaf – they’ve made unique contributions to our understanding of ethical leadership – The theme that is common to all 3 – is an ethic of caring - which pays attention to followers needs and the importance of leader-follower relationships. Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Diverse Perspectives of Leadership Heifetz’s Perspective Leaders use authority to mobilize followers to Get people focused on issues Act as a reality test regarding information Manage and frame issues Orchestrate conflicting perspectives Facilitate the decision-making process Leader provides a holding environment, a supportive context in which there is Trust, nurturance, & empathy Leader’s duties Assist the follower in struggling with change and personal growth Several prominent scholars – Heifetz, Burns and Greenleaf – they’ve made unique contributions to our understanding of ethical leadership – The theme that is common to all 3 – is an ethic of caring - which pays attention to followers needs and the importance of leader-follower relationships. Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Diverse Perspectives of Leadership Burns’s Perspective Theory of Transformational Leadership Strong emphasis on followers’ needs, values, & morals Leaders help followers in their personal struggles concerning conflicting values Stressing values such as liberty, justice, equality Connection between leader & follower Raises level of morality of both Leader’s Role Assist followers in assessing their values & needs Help followers to rise to a higher level of functioning Several prominent scholars – Heifetz, Burns and Greenleaf – they’ve made unique contributions to our understanding of ethical leadership – The theme that is common to all 3 – is an ethic of caring - which pays attention to followers needs and the importance of leader-follower relationships. Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

The Dark Side of Leadership Pseudotransformational leadership Characterized by destructive behaviors, such as violating basic human rights (Lipman-Blumen, 2005) Characterized by personal characteristics, such as lack of integrity, insatiable ambition, arrogance (Lipman-Blumen) Associated with workplace outcomes such as negative attitudes in followers toward jobs and organization as a whole (Schyns and Schilling, 2013) Add date to citation in 3rd bullet point Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Add figure SOURCE: Padilla, A., Hogan, R., & Kaiser, R. B. (2007). The toxic triangle: Destructive leaders, susceptible followers, and conducive environments. The Leadership Quarterly, 18, 180.

The Toxic Triangle Destructive Leaders Susceptible Followers Charismatic, narcissistic, self-absorbed Susceptible Followers Conformers and colluders Conducive Environments Unstable environments may grant leader more authority Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Ethics - is central to leadership because of The process of influence The need to engage followers to accomplish mutual goals The impact leaders have on establishing the organization’s values Discussion of 5 principles of ethical leadership – These principles provide a foundation for the development of sound ethical leadership Incorrect figure number? In addition I am emphasizing 3 points that reinforce the impact a leader has on followers, and the responsibility leaders have to be sensitive to how their leadership affects followers lives and why Ethics is central to leadership, because of - Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Principles of Ethical Leadership Treating others as ends (their own goals) rather than as means (to leaders’ personal goals) Respects Others Leader shall: Treat other people’s values and decisions with respect Allow others to be themselves with creative wants and desires Approach others with a sense of unconditional worth and value individual differences Leader behaviors: Listens closely to subordinates Is empathic Is tolerant of opposing viewpoints Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Principles of Ethical Leadership Follower centered - Based on the altruistic principle of placing followers foremost in the leader’s plans Leaders have A duty to help others pursue their own legitimate interests and goals To be stewards of the organization’s vision; in serving others they: clarify, nurture, and integrate the vision with, not for, organization members An ethical responsibility to make decisions that are beneficial to their followers’ welfare Serves Others Leader behaviors Mentoring behaviors Empowerment behaviors Team-building behaviors Citizenship behaviors Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Principles of Ethical Leadership Ethical leaders are concerned with issues of fairness and justice; they place issues of fairness at the center of their decision making Shows Justice Leaders shall: Adhere to principles of distributive justice Leader behaviors All subordinates are treated in an equal manner In special treatment/special consideration situations, grounds for differential treatment are clear, reasonable, and based on sound moral values Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Principles of Ethical Leadership Incorrect table number?

Principles of Ethical Leadership Manifests Honesty Honest leaders are authentic but also sensitive to the feelings and attitudes of others Leader behaviors Don’t promise what you can’t deliver Don’t suppress obligations Don’t evade accountability Don’t accept “survival of the fittest” pressures Acknowledge and reward honest behavior in the organization Leaders: Are not deceptive Tell the truth with a balance of openness and candor while monitoring what is appropriate to disclose in a particular situation Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Principles of Ethical Leadership Builds Community Concern for common good means leaders cannot impose their will on others; they search for goals that are compatible with everyone. Leader behaviors Takes into account purposes of everyone in the group Is attentive to interests of the community and culture Does not force others or ignore intentions of others Ethical leaders & followers take into account purposes of everyone in the group, and reach out beyond their own mutually defined goals to wider community Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

How Does the Ethical Leadership Perspective Work? Strengths Criticisms Application Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Strengths Provides a body of timely research on ethical issues Provides direction on how to think about ethical leadership and how to practice it Suggests that leadership is not an amoral phenomenon and that ethics should be considered as integral to the broader domain of leadership Highlights principles and virtues that are important in ethical leadership development Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Criticisms Lacks a strong body of traditional research findings to substantiate the theoretical foundations Relies heavily on writings of just a few individuals that are primarily descriptive and anecdotal in nature, and are strongly influenced by personal opinion and a particular worldview Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.

Application Can be applied to individuals at all levels of organization and in all walks of life Because leadership has a moral dimension, being a leader demands awareness on our part of the way our ethics define our leadership Managers and leaders can use information on ethics to understand themselves and strengthen their own leadership Leaders can use ethical principles as benchmarks for their own behavior Leaders can learn that leader-follower relationship is central to ethical leadership Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE Publications, Inc.